ARTICLES

Most towns will have a firm of solicitors offering conveyancing, amongst other services, however, the vast majority of these firms will have little or no experience of affordable housing conveyancing.

Although shared ownership has been around for many years, it is only in more recent years that it has become more prevalent. Likewise in recent years, various equity loan and discount purchase price schemes have been introduced. However, affordable housing is still only a small fraction of the overall housing sector, and the majority of solicitors still see affordable housing conveyancing as more complex than “ordinary” conveyancing. 

Indeed, those solicitors aren’t mistaken as affordable housing conveyancing can be more complicated for a number of reasons:

• Shared ownership leases contain many provisions that aren’t in other leases.
• Mortgages must be approved by the housing association the property is being purchased through, and lenders have more detailed requirements. 
• Equity Loan schemes have complex procedures and require the solicitor to liaise with the Help to Buy Agent as well as the developer/housing association and their solicitors.
• Discount schemes, such as developer-led schemes and the government scheme, First Homes, which was only launched in Summer 2021, are not acceptable to all lenders and can be so new that very few lenders, or solicitors, will have dealt with them before.
• The legal paperwork for new build properties is extensive. However, it tends to be similar for all plots, so it is more efficient for a solicitor to act for multiple buyers on a development.

There are some mortgage lenders who only have a limited number of conveyancing firms on their panel that they trust to act for them on shared ownership cases. A buyer who instructs a firm of solicitors who doesn’t specialise in affordable housing may therefore end up paying two sets of legal fees – their own solicitor’s fees for the conveyancing and their mortgage lender’s legal fees too. Housing associations, and the mortgage brokers they work with, will also often have panels of solicitors that they recommend who specialise in affordable housing.

Buyers can be distrustful of using a firm of solicitors that has been recommended, fearing that they won’t be sufficiently independent. Although this is a natural concern and people may often wish to use a more local firm, buyers should understand that their solicitor is duty bound to act in their best interests and is acting for them not the seller. Buyers should also keep in mind that as not all regular high-street solicitors are familiar with affordable housing products, that

they will probably charge more for the conveyancing and generally take longer when dealing with such cases. 

Therefore, in conclusion, using a firm which specialises in affordable housing or one which is on a “panel” as explained above, means that you will be looked after by an expert who will most likely charge less and generally proceed quicker than if you used a conventional high-street solicitor; in keeping with the housing association or developer’s purchase timelines.

Owen Paulo Legal Limited has emerged from Direction Law (the former largest firm providing affordable housing conveyancing to private individuals, housing providers and business clients) as a niche firm specialising in resale shared ownership transactions and staircasing transactions.

We are extremely proud to be the only firm in the country specialising in this type of work, especially as these types of transactions require an expert touch. We have a passion for pre-loved affordable housing and that translates into our conveyancing.